Global major BP Plc and its partner Reliance Industries (RIL) have jointly emerged as winners of a block under the fresh round of auction under the open acreage licensing policy. This would mark the re-entry of RIL into domestic exploration and production business after it stopped bidding for acreages in India.
The block that BP and RIL has won is said to be on the east coast. RIL had last won a block during the seventh round of auctions under NELP (New Exploration Licensing Policy) in 2008. At present, RIL is operating in only four blocks in India.
According to multiple sources, state-run Oil India (OIL) with 12 blocks has got the maximum number on offer -– six each in the second and third OALP rounds. The government is likely to clear the allotment of the blocks to successful bidders this week. The two rounds were initially estimated to attract investment worth Rs 80,000-90,000 crore.
Anil Agarwal-led Vedanta group, which had reportedly put in 30 bids, is expected to get five blocks each in OALP-II and OALP-III. During OALP-I, Vedanta was the most aggressive bidder, winning 41 of a total 555 blocks on offer. An industry source confirmed that the Directorate General of Hydrocarbons (DGH) has already shortlisted the list of winning bidders after evaluation and is waiting for the final clearance from the government, likely this week, to sign the contracts.
The country’s largest producer Oil and Natural Gas Corporation (ONGC) too won a total of eight blocks – seven under OALP-II and a single block under OALP-I. The only other company that won a block during the OALP-II and III rounds was Indian Oil Corporation (IOC).
Based on the data available with the DGH website, a total of 37 blocks were on offer during the two rounds – 14 under OALP-II and 23 under OALP III. Out of this, 32 areas will now be allotted to winners for exploration. “The government has not received any bids for the remaining five areas,” a source added.
Out of 14 Blocks under OALP-II, eight are in onland, five in shallow water and one is in ultra-deep water. Out of 23 blocks that were on offer under OALP-III, 19 are in Onland (including five CBM), three in Shallow Water and one is in deep water. The current round had adopted all the features of the Hydrocarbon Exploration Licensing Policy (HELP) that ensures reduced royalty rates, no oil cess, uniform licensing system, marketing and pricing freedom, revenue sharing model and exploration rights on all retained area for full contract life for bidders.
After taking charge in his second term, petroleum minister Dharmendra Pradhan had said increasing domestic oil and gas production was his top priority. The first round of OALP was expected to bring in around Rs 60,000 crore of investment to the sector.
With the current two rounds also going on stream, the OALP regime has so far seen committed investments to the tune of around Rs 1.4 trillion. Under OALP regime, blocks are awarded to companies that offer the highest share to the government in a given block.
Total number of blocks on offer under OALP-II & III: 37
Number of blocks allotted: 32
Areas on offer
OALP-II -- 29,233 sq km
OALP-III -- 31,722 sq km31,722 Sq Km of area
Who won the blocks?
| Company | Number of blocks |
| Oil India | 12 |
| Vedanta | 10 |
| ONGC | 8 |
| RIL-BP | 1 |
| IOC | 1 |